Ride-hailing platform Ola Mobility has laid off 300-350 people over the last three weeks as it streamlines processes and optimises costs to achieve better financial efficiencies before it hits the public market.
Employees across teams including product, marketing, sales, supply, tech, business and operations were affected, said sources closely aware of the developments.
The affected employees were given an option to resign immediately and take a one-month severance package, or serve a notice period.
“There has not been any form of official communication about it. Everything was quite strategically done. This has been happening from last three weeks. They would ask you to submit your laptops and other accessories, and leave immediately with one month pay as severance, or serve out the notice period,” the aforementioned person said.
Another person speaking to Business Today said the layoffs had more to do with the packages these employees were drawing from the company than their performances.
An email query sent to an Ola spokesperson did not elicit a response till the time of publishing this article.
Ola, which was very close to launching its IPO (initial public offering), had deferred the plans due to the current turbulence in public market. Company’s founder and CEO Bhavish Aggarwal recently told BT that the public market debut will happen either later this year or early next year.
The layoffs come shortly after the company announced its electric vehicle (EV) subsidiary, Ola Electric, will investment $500 million for setting up a state-of-the-art Battery Innovation Centre (BIC) in Bangaluru. BIC will be one of the world's largest and most advanced cell R&D facilities with more than 165 "unique and cutting-edge" lab equipment to cover all aspects of cell related research and development, the company had claimed.
Ola recently unveiled its first Li-ion cell, NMC 2170. Built in-house, Ola will begin the mass production of its cell from its upcoming Gigafactory by 2023.
Ola had shut down its quick commerce business Ola Dash and used car business Ola Cars. The closure of quick delivery business comes after the company announced plans of expanding it with 500 new dark stores across 20 cities in January. The company also said that the Ola Cars infra, technology and capabilities will be repurposed towards Ola Electric's sales and service network.
Ola was last valued at $7.3 billion when it raised $139 million in its Series J round, led by Edelweiss PE, IIFL, and Sunil Munjal-led Hero Enterprises.
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